Mortgage to Rent Scheme (MTR)

  • Author name
  • Publication dateJan. 25, 2024

Purpose of the Scheme

The newly enforced scheme "Mortgage to Rent" scheme, aims to reduce non-performing loans and thus mitigate the social and economic impact on the Cypriot economy, especially on vulnerable borrowers and households.

The main objective of this scheme is to reduce non-performing loans and to ensure the economic credibility and stability of the country.

Prospective Beneficiaries of the Scheme

(a) Recipients of social benefits with non-performing loans on 31/12/2021 and which remained non-performing on 31/12/2022, secured by the main residence, with a market value of up to €250,000.

(b) The second category of beneficiaries consists of all applicants in the ‘ESTIA’ and ‘OIKIA’ schemes, who were or will be assessed as eligible but not viable, with a market value of a primary residence of up to €350,000.

(c) The third category includes all applicants in the ‘ESTIA’ and ‘OIKIA’ schemes, who were approved for inclusion in these schemes and whose inclusion was subsequently terminated.

Outcomes of the Scheme

The government offers an alternative whereby citizens will transfer the ownership of their primary residence to the KEDIPES, maintaining their residency as the primary residence without any other financial burden, with the rent paid in full by the government. In particular, the scheme will be implemented by the KEDIPES, which will receive the properties whose owners will participate in the scheme. Prior to the transfer by the borrowers of their main residence to KEDIPES, the banks and credit acquiring companies will have to make an irrevocable and complete write-off of the loan secured by the main residence and lift the mortgage from the residence. Subsequently, the KEDIPES would rent the property to the owner, who was the former borrower, for a period of 10 to 15 years. The government will pay the full rent for the property, in which the beneficiary will continue to reside with KEDIPES. After 5 years lapse, the borrower and first-degree relatives will have the right to re-purchase the property.

Banks and Credit-acquiring companies that have signed up for the Scheme

Bank of Cyprus, Hellenic Bank, National Bank of Greece (Cyprus), Housing Financing Organisation, Alpha Bank, Astrobank, Eurobank, KEDIPES, Themis Portfolio Management, Gordian Holdings.


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